Based on the Corporate Valuation Model,the Value of a Company's

question 24

Multiple Choice

Based on the corporate valuation model,the value of a company's operations is $1,200 million.The company's balance sheet shows $80 million in accounts receivable,$60 million in inventory,and $100 million in short-term investments that are unrelated to operations.The balance sheet also shows $90 million in accounts payable,$120 million in notes payable,$300 million in long-term debt,$50 million in preferred stock,$180 million in retained earnings,and $800 million in total common equity.If the company has 30 million shares of stock outstanding,what is the best estimate of the stock's price per share?

• A)$24.90
• B)$27.67
• C)$30.43
• D)$33.48

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